Core Viewpoint - BJ's Wholesale Club is trading at a significant discount compared to Costco, presenting an interesting investment opportunity for those who find Costco's stock too expensive [1]. Membership and Sales Trends - BJ's total fiscal third-quarter revenue increased by 4.9% year over year to $5.35 billion, with comparable sales growing by 1.1%, and adjusted for gasoline prices, they rose by 1.8% [5]. - Membership fee income surged by 9.8% to $126.3 million, driven by higher-tier membership penetration and fee increases [5]. - Digitally enabled comparable sales grew by 30% year over year, indicating a significant increase in online sales contribution [7]. Profitability and Operating Performance - BJ's operating income declined by 4.8% year over year to $218.4 million, while net income slipped by 2.4% to $152.1 million due to rising labor and occupancy costs [6]. - The company expects comparable club sales, excluding gasoline, to rise by 2% to 3% for the full fiscal year and has raised its adjusted earnings-per-share outlook to a range of $4.30 to $4.40 [7][8]. Valuation Comparison - BJ's trades at approximately 19 times forward earnings and about 0.6 times sales, while Costco trades at a forward price-to-earnings ratio of about 44 and 1.4 times sales [11]. - The valuation gap reflects BJ's slower growth profile, with total revenue increasing by 4.3% year over year to $15.9 billion for the first nine months of fiscal 2025, compared to Costco's 8.2% revenue growth [10][11]. Market Position and Competitive Landscape - BJ's operates fewer than 300 clubs, while Costco has over 900, which contributes to Costco's stronger brand recognition and sales volume [12]. - BJ's must demonstrate its ability to achieve sustained sales growth and competitive advantages in a crowded market that includes Costco and Walmart's Sam's Club [14]. Investment Perspective - BJ's current valuation appears reasonable for a membership-based retailer with positive comparable sales and increasing membership fees, making it a solid alternative for investors seeking exposure to the warehouse club model [15].

Core Insights - Costco's business model focuses on minimizing costs to provide savings to its members, operating its stores like warehouses with merchandise on pallets and limited traditional store investments [1][2] - The company emphasizes a simple operating philosophy of keeping costs down and leveraging its large membership base and buying power to offer the best prices [2] - While cautious with technology investments, Costco is making strategic upgrades to enhance user experience, including checkout process improvements and digital enhancements [3][4][6] Checkout Improvements - Costco has tested self-checkout but has shifted to a new method that integrates human cashiers while speeding up the checkout process for members [4] - The new checkout technology allows employees to scan items while members are in line, reducing the time spent at the cashier [5] Technology Enhancements - The company is advancing its technology roadmap for digital and e-commerce, focusing on improving search effectiveness and user experience [6] - Recent enhancements include data augmentation for better search, passwordless sign-in for the mobile app, and a waiting room feature for high-demand items to reduce bot traffic and improve site stability during peak times [7]

We recently published 10 Stocks Jim Cramer Talked About. Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer discussed. For Jim Cramer's morning appearances, where there's Walmart, there's also Costco Wholesale Corporation (NASDAQ:COST). He has discussed both firms regularly throughout 2025 and kept an upbeat tone about them. Cramer believes that Costco Wholesale Corporation (NASDAQ:COST) plays an important role in the economy to ensure that Americans can buy affordable groceries. H ...

Core Insights - BJ's Wholesale Club reported a 9.8% increase in membership-fee income, reaching $126.3 million, indicating strong member engagement despite economic pressures [1] - The company experienced a 5% rise in third-quarter revenue to $5.35 billion, driven by higher membership fees and stable purchasing habits among consumers [6] - Comparable-club sales increased by 1.1%, with a 1.8% rise in same-store sales excluding gasoline, although this fell short of the expected 2.4% growth [5] Consumer Behavior - Shoppers across all income levels are cautious about rising prices and are actively seeking deals, with a notable shift towards private-brand products [1] - Medium- and high-income consumers are performing better than low-income shoppers, who reduced spending due to macroeconomic uncertainty and disruptions from the SNAP pause [2] Product Strategy - BJ's plans to expand its private-brand offerings, which are priced approximately 30% lower than comparable name-brand products, enhancing profit margins [4] - The company is launching a range of in-house products, including snacks and beverages, to align with current consumer trends [4] Financial Performance - The company's profit decreased to $152.1 million from $155.7 million year-over-year, but adjusted earnings of $1.16 per share exceeded Wall Street expectations of $1.09 [6] - Initial stock gains of about 4% following the earnings report were later reduced, with shares trading around $90.42 [3]

BJ's Wholesale Club (BJ) reported $5.35 billion in revenue for the quarter ended October 2025, representing a year-over-year increase of 4.9%. EPS of $1.16 for the same period compares to $1.18 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.35 billion, representing a surprise of -0.08%. The company delivered an EPS surprise of +5.45%, with the consensus EPS estimate being $1.10.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

BJ's Wholesale Club Investor Presentation Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward- looking statements, including, without limitation, statements regarding our future results of operations and financial position; our anticipated fiscal 2025 outlook; our membership fee in ...

ProfileCostco Wholesale Corporation operates membership warehouses that offer branded and private-label products across a wide range of categories, including groceries, electronics, apparel, and household goods. Its low-margin, high-volume model enables it to deliver consistently strong sales growth and exceptional customer loyalty.With over 870 warehouses globally and an expanding e-commerce platform, Costco continues to benefit from scale efficiencies, membership fee growth, and disciplined cost control. ...

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) is expected to report a 5% increase in revenue but a 6.8% decline in EPS due to higher expenses and weak discretionary spending trends.The company's P/E ratio is approximately 20.79, and the price-to-sales ratio stands at about 0.58, indicating its market valuation.BJ's debt-to-equity ratio is approximately 1.26, with a current ratio of around 0.79, highlighting its financial structure and liquidity position.BJ's Wholesale Club Holdings, Inc. (NYSE:BJ), a leading ...

Core Insights - Costco is experiencing strong revenue growth, with a commitment to maintaining stable prices on popular products, which differentiates it from other retailers facing price increases due to tariffs [3][6] - The company reported a net income of $2.61 billion, an 11% increase year over year, and net sales of $84.43 billion, up 8% year over year [6] - Membership fee income rose to $1.72 billion, reflecting a 14% year-over-year increase, indicating strong member retention and engagement [6] Financial Performance - Net income for Q4 2025 was $2.61 billion, marking an 11% increase compared to the previous year [6] - Net sales reached $84.43 billion, which is an 8% increase year over year [6] - Membership fee income increased to $1.72 billion, up 14% year over year, showcasing the effectiveness of Costco's membership model [6] - Shopping frequency increased by 3.7% globally, and average transaction tickets rose by 1.9% worldwide, indicating higher customer engagement [6] Revenue Enhancement Strategies - Costco is implementing new tactics to encourage members to spend more, including personalized messaging on its website based on membership type and credit card status [7] - The CFO highlighted that executive members receive tailored information about benefits, while Gold Star members are encouraged to upgrade their membership [8]

Core Insights - Costco Wholesale Corporation's October sales results highlight the effectiveness of its value-driven business model, with net sales increasing 8.6% year over year to $21.75 billion, supported by a 6.6% rise in comparable sales [1][8] - The company's strong member loyalty and positive value perception are evident, as shown by the renewal rates of 92.3% in the U.S. and Canada, and a global rate of 89.8% [2] Sales Performance - The impressive sales performance is attributed to product quality and everyday low prices, leading to high member retention, with total paid members increasing 6.3% to 81 million [2] - Online sales also saw a significant rise of 16.6% during the month, indicating a positive response to Costco's combination of convenience and affordability [4] Value Proposition - A key element of Costco's value proposition is the Kirkland Signature private label brand, which offers members a 15% to 20% price advantage over national brands of similar or superior quality [3] - The ongoing growth of Kirkland Signature penetration helps mitigate inflationary pressures, while Costco is also focusing on sourcing products closer to end markets to maintain competitive pricing [3] Competitive Landscape - Costco's share price has increased by 0.3% over the past year, contrasting with the industry's growth of 3.7%, while Dollar General shares have surged by 35.3% and Target shares have dropped by 42.6% [5] - From a valuation perspective, Costco's forward 12-month price-to-earnings ratio is 45.36, significantly higher than the industry average of 29.89 [6][9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share indicates year-over-year growth of 7.7% and 11%, respectively [10] - Current quarter estimates for sales are projected at $67.15 billion, with a year-over-year growth estimate of 8.04% [11]